Singapore Awaits More Tourists
During the start of the financial year, Singapore was staring down the barrel of a recession. The official data for the first quarter showed Singapore’s economy declining 0.4 percent from the previous three-month period on a quarter-on-quarter seasonally adjusted basis. But things have changed in an almost magical way for the country. Singapore’s economy dodged a technical recession in the second quarter, growing 0.7 percent year-on-year and 0.3 percent quarter-on-quarter, according to estimates.
The latest data is welcome news for the country as the Monetary Authority of Singapore (MAS), the city-state’s central bank and financial regulator, had warned of an “uncertain” growth outlook earlier this month. “The near-term outlook remains uncertain with downside risks. Should latent vulnerabilities in the global financial system emerge in the coming months, consumer and investor confidence could take a further hit, with adverse implications for the broader economy,” the MAS said in its annual review. After the GDP release, the Singapore dollar also slightly strengthened against the US dollar. SGD was traded at $1.321 against the greenback.
The country largely owes its tourism industry for evading recession. The city-state saw 6.3 million visitors last year, exceeding the Singapore Tourism Board's (STB) forecast of 4 to 6 million. Indian Tourists played a decisive role in this. A total number of 612,300 visitors from India arrived in Singapore till November 2022, as per Singapore Tourism Board (STB) data. Following the announcement of the reopening of Chinese borders, Singapore expects 12 to 14 million arrivals and up to S$21 billion in revenue in 2023. The numbers look good for a U-shaped recovery.